First Person: The Ins and Outs of Flood Insurance

With the recent earthquake and subsequent tsunami in Japan, millions of dollars have been donated to help the people of that country recover from this disaster and try to start their lives again. As a result, awareness is again being raised in the United States about disaster preparation and prevention. If you are a renter, you most likely have a renter's insurance policy to cover the contents of your home in case of a disaster. If not, you certainly should secure one of these policies immediately. If you are a homeowner, you no doubt have a good homeowner's insurance policy to cover the loss of your home and the contents in case of a disaster. However, you may not be aware that most, if not all, of these policies do NOT include flood insurance - this coverage is optional and must be purchased separately.

What Is Flood Insurance and Why Do I Need It?

Flood insurance is pretty simple and straight-forward. It's a policy that will cover the loss of your home and its contents in the case of a flood. Almost everyone needs a flood insurance policy, even if you do not live in a flood plain. You never know when a disaster may strike and your home may flood. If you are not protected by a flood insurance policy, you are pretty much out of luck when it comes to replacing your home and belongings.

How Do I Get Flood Insurance?

If you rent your home, your landlord has already insurance the structure that you live in. You must secure a renter's insurance policy that insures your belongings. Speak to your insurance agent to have flood protection added to your policy. If you are a homeowner, your homeowner's policy protects the structure and your belongings; speak to the insurer that holds your homeowner's insurance policy about adding flood protection.

How Much Does It Cost?

Premiums for flood insurance are relatively cheap, adding just a few dollars on to your policy per month. The cost may vary depending on your location, the value of your house and the contents, and the type and amount of coverage you choose. Speak to your insurance agent today to get a quote and purchase flood insurance protection.

A simple phone call or a few clicks of your mouse is all it takes to protect your home from a complete loss due to flooding. As always, if you have questions about this or any other financial topic, seek the services of a licensed, responsible financial advisor or other professional.

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